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Re: Personal wishful thinking vs. Reality
Posted by Reality (more from Reality) on Mon, 9 May 2011 09:30:05
In Reply to: Re: Personal wishful thinking vs. Reality, James, Mon, 9 May 2011 08:09:19
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Glad to see you are no longer defending Keynesianism in its name.
Reducing taxes is conducive to economic recovery/growth, but it is not stimulus: any more than if the mugger points a gun at your head, and then decide to take less from you is a form of charity.
Government economic stimulus, in the form of increased government spending, is almost always counterproductive. The GDP number may go up, but that's just the way GDP is defined; the real living standards of people actually go down! The ultimate expression of that process is of course massive war making, as illustrated before. The same process takes place on a smaller scale with civilian stimulus programs: e.g. road building is nothing more than wasting over-priced labor and material on contractors with connections while the rest of society is ripped of, both in the form of increased taxes that will ultimately needed to pay it back and in the immediate effect of taking labor and material out of the market where private entreprenuers would be able to make use of them and make something that people want even more. Just like keeping GM, and more importantly union jobs at GM, alive through government subsidy is preventing resources going to Ford, Toyota USA, American Honda, and zillions of workers in Detroit area who are willing to work for less pay than the union wage. Every single union job "saved" is destroying multiple jobs.
Balancing budget cyclically is an intellectual fraud when the cycle is not defined apriori. It's like, "I will pay you back . . . someday . . ." In a sound money system, individuals would have the power to take the politicians to task for their lies, by refusing to buy government bonds. That's why Keyneisans always need fiat money power: to rob people through inflation when they say no to the counter-productive "stimulus" programs.
posted by 76.118.39...
Posts in this Thread:
- Car company bailouts, No Snaab, Thu, 5 May 2011 13:19:51
- GM to add 4,000 jobs, duking it out with Toyota, No Snaab, Wed, 11 May 2011 07:58:09
- Important to see the big picture, Noel, Fri, 6 May 2011 06:16:54
- Doubly Ironic, Reality, Fri, 6 May 2011 07:00:56
- So why don't you tell us, Noel, Fri, 6 May 2011 09:45:54
- He doesn't deal in "reality", No Snaab, Fri, 6 May 2011 11:17:12
- Re: So why don't you tell us, Reality, Fri, 6 May 2011 10:46:21
- You didn't answer the questions, Noel, Fri, 6 May 2011 11:17:54
- Re: You didn't answer the questions, Reality, Fri, 6 May 2011 11:43:04
- Re: You (still) didn't answer the questions, Noel, Fri, 6 May 2011 12:49:13
- He won't answer, No Snaab, Fri, 6 May 2011 14:12:45
- What is Heaven like?, Reality, Fri, 6 May 2011 15:04:00
- less vs more vs balance, James, Fri, 6 May 2011 15:31:40
- Balance is okay, Reality, Fri, 6 May 2011 16:10:30
- What color is the sky in your world?, Noel, Fri, 6 May 2011 16:24:48
- Blue, Black, Grey, White, Orange, Pink, Red,, Reality, Fri, 6 May 2011 16:46:55
- So without the government stepping in, Noel, Fri, 6 May 2011 19:55:24
- Re: Blue, Black, Grey, White, Orange, Pink, Red,, James, Fri, 6 May 2011 18:11:52
- False Choice, Reality, Fri, 6 May 2011 13:33:38
- Re: So why don't you tell us...Been there done that an, Joeychess, Fri, 6 May 2011 10:22:45
- That's fiscally responsible and also well stated yet, Joeychess, Fri, 6 May 2011 08:19:33
- Re: Important to see the big picture...Well said n/m, Joeychess, Fri, 6 May 2011 06:22:03
- Don't kid yourself, BTG88, Thu, 5 May 2011 21:59:15
- Gov't role in today's economy, adl6009 , Thu, 5 May 2011 19:17:20
- Ironic timing, "new" GM is caught stuffing channel, Reality, Thu, 5 May 2011 13:41:26
- Macro econ. vs the guy at the plant, AlS, Thu, 5 May 2011 18:16:21
- Keynesianism is Macro Econ, duh!, Reality, Thu, 5 May 2011 18:27:34
- "I address car topics under a different user name.", Steve T., Fri, 6 May 2011 08:02:22
- Keynes vs. Keynes..., James, Fri, 6 May 2011 06:49:05
- Re: Keynesianism is Macro Econ, duh!, kkelley, Thu, 5 May 2011 20:37:44
- Apparently stuffing the distribution channel works, Paul B., Thu, 5 May 2011 16:33:57
- Re: Ironic timing, "new" GM is caught stuffing channel, kkelley, Thu, 5 May 2011 14:50:16
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